KUALA LUMPUR: Palm oil rebounded from a one-week low on a weaker Malaysian currency and expectations of lower production in the second-biggest grower in September.
“Output trend in Malaysia has been lower this month,” said Abdul Hameed, director of sales at Manzoor Trading Co in Lahore.
“A further fall in the ringgit also attracted bargain buying as some traders are purchasing to cover October demand,” he said.
“However, gains in palm oil prices may not be sustainable as Indian festival buying is largely over,” said Gnanasekar Thiagarajan, head of trading and hedging strategies at Kaleesuwari Intercontinental.
India is the world’s biggest importer of edible oils.
Malaysian palm oil exports rose 2.6% during Sept 1-15 from a month earlier, according to Intertek Testing Services.
AmSpec Agri data showed exports were little changed.